Buying a house for your family is everyone’s dream, especially when you are buying a house for the first time. It is a very special feeling. First-time home buyers should keep in mind many important things. If you are also thinking of buying a house or flat for the first time, then these tips will prove to be very helpful for you.
How to take a home loan, how to control expenses, and how to avoid giving commission to the agent – we will discuss all these aspects in detail so that your dream of buying a house can be right and successful.
Take a home loan wisely
If you have a good credit score, banks can give you a loan of up to 90% of the property price. It is wise to make as much down payment as possible. This will reduce your monthly installment (EMI) and avoid a heavy burden in the long run. Before taking a home loan, contact different banks and NBFCs (non-banking financial companies). Take a loan from where you get the lowest interest rate. It is a smart financial move.
Evaluate your ‘salary’ correctly
While taking a home loan, think about your current salary as well as how much your salary can increase in the coming years. Remember that you have to bear the entire cost of the house from your salary, which will include maintenance and other expenses apart from EMI. It is extremely important to make a realistic assessment of your income and expenses.
Control your expenses
Make a record of your expenses before taking a home loan. Wherever expenses can be reduced or stopped, act on it immediately. Avoid unnecessary expenditure so that you never face any problems in paying EMI in the future! Develop the habit of saving. This financial discipline will save you from major financial challenges.
Avoid paying ‘commission’ to the agent
If you buy a house through an agent, he charges one and a half percent commission. Some agents also charge a commission from the house seller. It is usually 1 percent. The house seller ultimately recovers this cost from the buyer.
In such a situation, the buyer has to pay a direct and indirect commission of 2.5 to 3 percent. If there is no agent between the developer and the buyer, this commission will be saved. In such a situation, try to buy the house directly from the developer or seller. This is a smart strategy that can help you save thousands of rupees.
Assess the ‘age’ of the property correctly
Knowing the exact age of the property you are going to buy is very important. In today’s time, the maximum age of any property is considered to be 70 to 80 years. Keep in mind that the older your property is, the lower its price will be compared to a new property.
To know the exact age of the property, you can talk to local people and property dealers in that area. Apart from this, you can also take the help of a structural engineer. This information will help you make an informed decision.